Cryptocurrency Wallets

Moving money is becoming cheaper and easier, especially in this era of cryptographic digital currencies, plainly called cryptocurrencies. Because of the digital nature of cryptocurrencies, not any wallet can be used to handle it, though.

Wondering how to use cryptocurrency wallets and what the different types of crypto wallets are? Keep reading to find out…

Cryptocurrency imagery and wallets

FX Leaders are committed to conveying accurate and unbiased information about the different service providers in the cryptocurrency industry. Just like with crypto exchanges and cryptocurrency platforms, choosing the most appropriate cryptocurrency wallet(s) is important to ensure effective transacting and safety of funds.

There are different types of cryptocurrency wallets. A cryptocurrency wallet is either ‘hot’ or ‘cold’. A cold wallet is isolated from the internet (offline) and a hot wallet is connected to the internet (online).

Besides these two major classes, cryptocurrency wallets are available in the following forms:

More About Cryptocurrency Wallets

What is Stored in a Crypto Wallet?

Private keys are necessary to unlock cryptocurrency and to spend or transfer it. When private keys are lost or stolen the corresponding cryptocurrency cannot be accessed. Private keys, therefore, need to be safeguarded at all times.

Different Wallets for Different Applications – Hot and Cold

As mentioned earlier, crypto wallets are either hot or cold. Hot wallets are less secure than cold wallets because they are connected to the internet.

A good example of a hot wallet is Exodus. Exodus in itself is really reliable and securely encrypts and protects its clients’ blockchain assets with passwords. The danger does not lie with Exodus in this case but with the computer on which the Exodus wallet is stored.

Hot wallets are really convenient to use but appropriate safety measures should be taken to secure them.

If the computer’s security is compromised in some way, the user’s assets could be in danger. This is possible if, for example, viruses or malware containing keyloggers or spyware infiltrate the client’s computer.

Nevertheless, a hot wallet is a handy tool and its risks can be effectively mitigated by reducing the amount of cryptocurrency held in it. Exodus recommends using their wallet in combination with a multi-signature wallet, a hardware wallet (like KeepKey), or even an offline paper wallet.

By keeping the majority of cryptocurrency assets in cold storage, the risk of getting burnt by a crypto hack (which is improbable) is reduced significantly. A wealthy man wouldn’t walk around with all his cash on him rather he keeps the majority of his funds in a safe or his bank account.

Likewise, owners of crypto assets should keep the majority of there cryptocurrencies in cold storage and only send the necessary crypto to hot wallets when they need to exchange or transfer it.

Keeping Control of Your Private Keys

You may have noticed in the wallet table above, that users of Keepkey, Exodus, Jaxx, Trezor, and Ledger remain in control of their private keys. This is vital. Whatever your wallet choice is, make sure that only you have access to your private keys.

Multi-Currency Wallets

Besides bitcoin, there are hundreds of other cryptocurrencies out there. The good news is that many of these can be accessed through a single, multi-currency wallet.

The hot wallets Exodus and Jaxx both provide access to a variety of cryptocurrencies and allow their users to exchange several coins between one another by means of their integration with the Shapeshift exchange service.

Genesis features a built-in crypto exchange which is really easy to use, even for beginners.

Of course, as you may have seen in the table above, the hardware wallets KeepKey, Trezor, and Ledger are also compatible with numerous cryptocurrencies.

Cryptos – A Booming Asset Class

With more and more institutions, retailers, and individuals using cryptocurrencies, the financial world is changing rapidly. Thousands of new participants are entering the crypto market every day for different reasons, which include international and local money transfers, investment and other speculative purposes, crypto mining activities, etc.

Getting Involved in the Cryptocurrency Market

To get involved in the crypto market is really not complicated, especially with beginner-friendly wallets like KeepKey, Genesis, and Jaxx where individuals can also exchange different crypto coins for one another.

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